Nara Hotel Stated That The IPO Process Has Been Appropriate Procedure

Hotel Tijili Benoa owned by PT Nara Hotel International Tbk. (Photo: Nara Hotel)

JAKARTA - PT Nara Hotel International Tbk stated that it had done things in accordance with applicable regulations in the initial public offering (IPO) process. The company assessed that there were efforts from irresponsible parties in the postponement of the company's IPO, which was supposed to be scheduled for today, Friday, February 7.

The Corporate Legal Director of PT Nara Hotel Internasional Tbk, Yudistira Putra Sakti suspected that an attempt was made to control the IPO shares of an issuer coded NARA, which failed.

"So it attacks back by raising negative issues. Because Nara Hotel chose to provide a portion of pooling (share rationing) to retail investors, because they do not want the share price to be controlled by the dealer," Yudistira said in a statement received by VOI, Friday, February 7.

Judis also sees this is being ridden by elements of the capital market mafia, who have a negative influence and damage the investment climate in the financial market.

"Practices like that are out of date, we have to move forward and change the mindset, the Indonesian capital market belongs to the people, not a handful of giant investors who can control issuers and manipulate the market," said Yudis.

Yudis hopes that the public should be able to enjoy positive returns from investment. According to him, this is so that the investment climate in Indonesia is maintained, continues to grow evenly, and is not controlled by a group of people alone.

"We hope justice and regulators can immediately eradicate the capital market mafias. Let us entrust the regulators who have the authority to resolve this problem," concluded Yudis.

Nara Hotel believes that the ordering procedure for the public offering letter on 3 and 4 February 2020 has met the applicable terms and regulations. This is because each potential investor fills in the Share Purchase Order Form (FPPS) and other administrative requirements, and fulfills the share purchase requirements by completing administrative documents and depositing an amount of funds according to the shares ordered.

Previously, the postponement of Nara Hotel's IPO was motivated by reports of fraud in recording company assets obtained by IDX from shareholders. In addition, potential investors also complained about the unfairness of the share rationing during the public offering.

President Director of the Indonesia Stock Exchange (IDX), Inarno Djajadi, said the postponement of listing was at the request of the OJK one day before listing. The day before, OJK issued a letter with Number: S-4 / PM.2 / 2020 dated February 6, 2020 regarding Post Registration of Shares.

The listing of NARA's shares is only postponed until the OJK and BEI conduct an investigation into the truth of the complaint.